Internet Crime Complaint Center 1 - American Bank · The IC3 expanded the remote search capabilities of the IC3 database by allowing users to gather IC3 complaint statistics. Users

1 Internet Crime Complaint Center

2 2017 Internet Crime Report

2017 INTERNET CRIME REPORT Table of Contents Introduction ................................................................................................................................ 3

About the Internet Crime Complaint Center ............................................................................. 4

IC3 History ............................................................................................................................... 4

The IC3 Role in Combating Cyber Crime ................................................................................. 5

Collection ................................................................................................................................ 5

Analysis ................................................................................................................................... 6

Public Awareness .................................................................................................................... 6

Referrals .................................................................................................................................. 6

Supporting Law Enforcement ..................................................................................................... 7

IC3 Database Remote Access .................................................................................................. 7

Successes ................................................................................................................................ 7

Operation Wellspring (OWS) Initiative ............................................................................... 9

OWS Success Stories ......................................................................................................... 10

Hot Topics for 2017 .................................................................................................................. 12

Business Email Compromise ................................................................................................. 12

Ransomware ......................................................................................................................... 13

Tech Support Fraud .............................................................................................................. 14

Elder Justice Initiative ........................................................................................................... 15

Extortion ............................................................................................................................... 16

2017 Victims by Age Group ...................................................................................................... 17

Top 20 Foreign Countries by Victim ......................................................................................... 18

Top 10 States by Number of Victims ....................................................................................... 19

Top 10 States by Victim Loss ................................................................................................... 19

2017 Crime Types ..................................................................................................................... 20

2017 Overall State Statistics ..................................................................................................... 22

Appendix A: Crime Type Definitions......................................................................................... 26


Introduction Dear Reader,

2017 was a milestone year for the FBI’s Internet Crime Complaint Center (IC3). On October 12, 2017, at 4:10pm, the IC3 received its 4 millionth consumer internet crime complaint.

As the lead federal agency for investigating cyber-attacks by criminals, overseas adversaries, and terrorists, the FBI’s IC3 provides the public with a trustworthy and convenient reporting mechanism to submit information concerning suspected Internet-facilitated criminal activity. The IC3 also strengthens the FBI’s partnerships with our law enforcement and private industry partners. As cyber criminals become more sophisticated in their efforts to target victims, we must continue to transform and develop in order to address the persistent and evolving cyber threats we face.

The 2017 Internet Crime Report emphasizes the IC3’s efforts in monitoring trending scams such as Business Email Compromise (BEC), Ransomware, Tech Support Fraud, and Extortion. The report also highlights the Elder Justice Initiative promoting justice for the nation’s seniors. In 2017, IC3 received a total of 301,580 complaints with reported losses exceeding $1.4 Billion.

This past year, the most prevalent crime types reported by victims were Non-Payment/Non-Delivery, Personal Data Breach, and Phishing. The top three crime types with the highest reported loss were BEC, Confidence/Romance fraud, and Non-Payment/Non-Delivery.

This year’s report features success stories from two different successful cases initiated from IC3 complaints. Additionally, the Operation Wellspring (OWS) Initiative continues to build the cyber investigative capability by utilizing Cyber Task Force officers, thus strengthening state and local law enforcement collaboration.

We hope this report provides additional information of value as we work together to protect our nation against cyber threats.

Scott S. Smith

Assistant Director

Cyber Division

Federal Bureau of Investigation


About the Internet Crime Complaint Center The mission of the FBI is to protect the American people and uphold the Constitution of the United States.

The mission of the IC3 is to provide the public with a reliable and convenient reporting mechanism to submit information to the FBI concerning suspected Internet-facilitated criminal activity, and to develop effective alliances with industry partners. Information is analyzed and disseminated for investigative and intelligence purposes, for law enforcement, and for public awareness.

In an effort to promote public awareness, the IC3 produces this annual report to aggregate and highlight the data provided by the general public. The quality of the data is directly attributable to the information ingested via the public interface www.ic3.gov. The IC3 attempts to standardize the data by categorizing each complaint based on the information provided. The IC3 staff analyzes the data to identify trends in Internet-facilitated crimes and what those trends may represent in the coming year.

IC3 History In May 2000, the IC3 was established as a center to receive complaints of Internet crime. There have been 4,063,933 complaints reported to the IC3 since its inception. Over the last five years, the IC3 has received an average of more than 284,000 complaints per year. The complaints address a wide array of Internet scams affecting victims across the globe.1

1 Accessibility description: Image includes yearly and aggregate data for complaints and losses over the years 2013 to 2017. Over that time period, IC3 received a total of 1,420,555 complaints, and a total reported loss of $5.52 billion.

http://www.ic3.gov/


The IC3 Role in Combating Cyber Crime2

Central Hub to Alert the Public

Partner with Private Sector and with Local,

State, Federal, and International Agencies

Host Remote Access Database for all Law Enforcement via the FBI’s LEEP3 website

Victims Report Internet Crime via

Increase Victim Reporting

via Outreach

Collection Victims are encouraged and often directed by law enforcement to file a complaint online at www.ic3.gov. Complainants are asked to document accurate and complete information related to the Internet crime, as well as any other relevant information necessary to support the complaint. In addition to reporting the crime via www.ic3.gov, complainants should take steps to mitigate further loss. Victims can take actions such as contacting banks, credit card companies, and/or credit bureaus to block accounts, freeze accounts, dispute charges, or attempt recovery of lost funds. Victims should be diligent in reviewing credit reports to dispute any unauthorized transactions and should also consider credit monitoring services.

2 Accessibility description - image depicts what IC3 does to include providing a central hub to alert the public: partner with private sector and with local, state, federal, and international agencies; host a remote access database for all law enforcement via the FBI’s LEEP website; victim reporting at www.ic3.gov; and increase victim reporting via outreach. 3 Federal Bureau of Investigation. Law Enforcement Enterprise Portal (LEEP)

www.ic3.gov

WHAT WE DO

http://www.ic3.gov/

http://www.ic3.gov/

http://www.ic3.gov/

https://www.fbi.gov/services/cjis/leep


Analysis The IC3 is the central point for Internet crime victims to report and alert the appropriate agencies to suspected criminal Internet activity. The IC3 reviews and analyzes data submitted through its website, and produces intelligence products to highlight emerging threats and new trends.

Public Awareness Public service announcements (PSAs), scam alerts, and other publications outlining specific scams are posted to the www.ic3.gov website. As more people become aware of Internet crimes and the methods utilized to carry them out, potential victims are equipped with a broader understanding of the dangers associated with Internet activity and are in a better position to avoid falling prey to schemes online.

IC3 Core Functions4

Referrals The IC3 aggregates related complaints to build referrals, which are forwarded to local, state, federal, and international law enforcement agencies for potential investigation. If law enforcement conducts an investigation and determines a crime has been committed, legal action may be brought against the perpetrator.

4 Accessibility description: image contains the IC3 logo against a digital background. Core functions are listed in individual blocks- Collection, Analysis, Public Awareness, and Referrals as components of an ongoing process.

Analysis

Public Awarness

Referrals

Collection

http://www.ic3.gov/


Supporting Law Enforcement

IC3 Database Remote Access All sworn law enforcement can remotely access and search the IC3 database through the FBI’s Law Enforcement Enterprise Portal (LEEP).

LEEP is a gateway providing law enforcement agencies, intelligence groups, and criminal justice entities access to beneficial resources all in one centralized location. These resources can be used to strengthen case development for investigators and enhance information sharing between agencies. This web-based access additionally provides users the ability to identify and aggregate victims and losses within a jurisdiction.

The IC3 expanded the remote search capabilities of the IC3 database by allowing users to gather IC3 complaint statistics. Users now have the ability to run city, state, county, and country reports and sort by crime type, age, and transactional information. The user can also run overall crime type reports and sort by city, state, and country. The report results can be returned as a portable document format (PDF) or exported to Excel. This search capability allows users to better understand the scope of cyber crime in their area of jurisdiction and enhance cases.

Successes International Investment Scam: FBI Houston Beginning in 2015, the IC3 provided multiple complaints to FBI Houston regarding an elaborate investment scheme. The scheme involved the impersonation of Branch Banking & Trust (BB&T) and JPMorgan Chase (Chase) executives, the fabrication of U.S. government documents, the creation of fraudulent investment agreements in the name of BB&T and Chase, and the purchase of luxury vehicles to launder the proceeds of the scheme. It was perpetrated by individuals primarily living in West Africa, who impersonated U.S. bank officials and financial consultants, and made fraudulent offers of investment funding to victims all over the world via the Internet and phone. Victims were deceived into believing they would receive millions of dollars of investment funding as part of joint ventures with U.S. banks, usually BB&T or Chase. The perpetrators utilized false domain names to make it appear their emails were affiliated with BB&T or Chase. To convince victims the opportunities were authentic, the perpetrators recruited U.S. citizens to pose as bank “representatives” at in-person meetings with the victims. If the victims lived outside the U.S., the perpetrators orchestrated bogus visits to the local U.S. embassy or consulate and fabricated U.S. government documents to convince the victims the U.S. government was sponsoring the investment agreements. The victims were then induced to pay tens of thousands, and often hundreds of thousands, of dollars to U.S.-based bank accounts on the belief that such payments were necessary to effectuate their investment agreements.


Once the funds hit the U.S.-based accounts, money movers controlling the accounts used various means to liquidate the proceeds and move the funds to West Africa, including outgoing wire transfers to exporters, cash withdrawals, and the purchase of luxury vehicles which were shipped to West Africa.

The scheme allegedly resulted in losses of more than $7 million from victims in more than 20 countries. To date, a house in Richmond, vehicles and approximately $200,000 in cash, all directly traceable to victims’ payments, have been seized5.

Harassment/Extortion: FBI Los Angeles Since October 2017, FBI Los Angeles has been investigating a reported intrusion of a company’s network that also involved harassment and extortion by an unknown subject. This individual continuously harassed the company with emails and phone calls that greatly impacted the victim company’s business. The harassment continued until the company agreed to make payments for the attacks to stop.

The case was initiated by an IC3 complaint sent to FBI Los Angeles. During the course of the investigation, IC3 linked another complaint to the victim company and provided that information to FBI Los Angeles as well. The information contained within the linked IC3 complaint was instrumental in providing probable cause for a search warrant and then used in the interview of a subject, which ultimately led to a full confession.

5International Investment Scam Details

https://www.justice.gov/opa/pr/six-individuals-charged-7-million-international-investment-scam


Operation Wellspring (OWS) Initiative Operation Wellspring builds the cyber investigative capability and capacity of the state and local law enforcement community. Through close collaboration with FBI field offices, IC3 helps state and local law enforcement partners identify and respond to malicious cyber activity.

Key Components

Serves as a national platform to receive, develop, and refer Internet-facilitated fraud complaints.

Coordinates with FBI Cyber and Criminal components.

Trains state and local law enforcement officers on cyber crime investigations.

Addresses Internet-facilitated criminal cases not meeting most federal investigative thresholds by utilizing Cyber Task Force (CTF) state and local officers.

CTFs The OWS Initiative was launched in August 2013 with the Salt Lake City CTF, in partnership with the Utah Department of Public Safety. Since then, OWS has expanded to 13 field offices: Albany, Buffalo, Kansas City, Knoxville, Las Vegas, New York City, New Orleans, Oklahoma City, Omaha–Des Moines, Phoenix, Richmond, Salt Lake City, and San Diego.

Total OWS Opened Investigations The IC3 receives, on average, 800 complaints per day, and OWS offers CTFs a consistent resource to identify Internet fraud subjects and victims located throughout the world. As a result of OWS, 27 investigations were opened in 2017. Accomplishments included arrests, disruptions, convictions, indictments, and asset forfeitures. In addition, financial restitutions were obtained and criminals were sentenced.

Victim Complaints The IC3 provided 289 referrals to 13 CTFs based on 1,867 victim complaints. The total victim loss associated with these complaints was approximately $15.7 million.

OWS Statistics6

6Accessibility description: images containing the number of Field Offices (13) involved with the OWS initiative, the number of opened investigations (27), and the number of victims (1,867).

27

1,867

13


OWS Success Stories Multiple victims reported on www.IC3.gov that they had been defrauded by the same subject over the internet. The victims shipped high end clothing and jewelry to the subject without receiving the agreed compensation. The

subject broke off all communication after receiving the products. The Deputy District Attorney from the San Diego County District Attorney's Computer and Technology Crime High-Tech Response Team (CATCH) agreed to handle the case at the state level. The investigation included the execution of a physical search warrant and arrest at the suspect's home by members of the FBI San Diego CTF and members of the San Diego District Attorney's CATCH team. As a result of the search and arrest, investigators recovered stolen property and obtained a recorded interview in which the suspect admitted to the theft. The San Diego Regional Computer Forensics Laboratory (RCFL) was also used to analyze devices seized during the search warrant providing additional evidence for the case. The cooperative effort between IC3, the San Diego District Attorney's CATCH team, the San Diego RCFL and FBI San Diego CTF resulted in a theft conviction and the return of stolen property.

This case involved the employee theft of approximately $25,000 worth of merchandise from a San Diego-based electronics internet retailer and the coordinated sale of the stolen items on a co-conspirator's auction website. A

component of this case included an internet return fraud scheme in which the subjects purchased items from an online seller and later returned less valuable products for a refund. Working with the OWS Task Force, the Deputy District Attorney from the San Diego County District Attorney's CATCH agreed to handle the case at the state level. Analysis of search warrant returns showed the sale of the stolen items and the division of the proceeds between the two subjects. Both subjects admitted to the crimes during recorded interviews and were later arrested. Both subjects pled guilty to felony charges and were required to pay restitution to the victim.

In the spring of 2016, Brandon Douglas Shanahan began impersonating a former, well-known University of Tennessee football player to extort and threaten multiple female victims. Utilizing a username posing as the player,

Shanahan would threaten bodily harm and demand inappropriate photographs. Multiple victims were identified with similar reports of harassment during the investigation and through IC3 complaints. In June 2016, Shanahan was arrested and activities disrupted. Shanahan knowingly transmitted in interstate and foreign commerce with intent to extort money and other things of value. In December 2016, Shanahan entered a guilty plea on the count of interstate communications with the intent to extort. Shanahan broke his bond agreement, was re-arrested, and pled guilty to an additional count. Shanahan was sentenced to 30 months in a Federal Bureau of Prisons (BOP) Facility, followed by a one-year probation.

SAN DIEGO

SAN DIEGO

KNOXVILLE


Multiple victims reported to the IC3 that they had not received vehicles purchased and paid for via the internet. The IC3 aggregated the complaints, conducted independent research, and provided the information to the FBI

Knoxville CTF. The resulting investigation determined Irvin Cachu-Melo and Luis Javier Martinez-Melo were operating as "money mules" in an on-going wire fraud scam involving the fraudulent sales of automobiles. Cachu-Melo and Martinez-Melo used stolen identities acquired by Martinez-Melo, to conduct wire transfers of the funds. In 2017, The investigation determined Cachu-Melo was arrested and pled guilty to Conspiracy to Commit Money Laundering. Cachu-Melo was sentenced to 25 months in a BOP Facility along with three years of supervised release. Martinez-Melo was also arrested and pled guilty to Conspiracy to Commit Bank Fraud, Aggravated Identity Theft, and Conspiracy to Commit Wire Fraud. Martinez-Melo was sentenced to serve 57 months in a BOP Facility and is subject to 5 years of supervised release.

KNOXVILLE


Hot Topics for 2017

Business Email Compromise BEC is a sophisticated scam targeting businesses that often work with foreign suppliers and/or

businesses and regularly perform wire transfer payments. The Email Account Compromise

(EAC) variation of BEC targets individuals who regularly perform wire transfer payments. It

should be noted while most BEC and EAC victims reported using wire transfers as their regular

method of transferring business funds, some victims reported using checks. The fraudsters

used the method most commonly associated with their victims’ normal business practices.

Both scams typically involve one or more fraudsters, who compromise legitimate business

email accounts through social engineering or computer intrusion techniques to conduct

unauthorized transfers of funds. Because the techniques used in the BEC and EAC scams have

become increasingly similar, the IC3 began tracking these scams as a single crime type in 2017.

Fraudulent transfers conducted as a result of BEC and EAC have been routed through accounts

in many countries with a large majority traveling through Asia.

BEC and EAC are constantly evolving as scammers become more sophisticated. In 2013,

victims indicated the email accounts of Chief Executive Officers or Chief Financial Officers were

hacked or spoofed, and fraudulent emails were sent requesting wire payments be sent to

fraudulent locations. In 2014, victims reported personal email accounts were being

compromised, and fraudulent requests for payment were sent to vendors identified out of

their personal contact lists. In 2015, victims reported being contacted by subjects posing as

lawyers or law firms instructing them to make secret or time sensitive wire transfers.

BECs may not always be associated with a request for transfer of funds. In 2016, the scam

evolved to include the compromise of legitimate business email accounts and fraudulent

requests for Personally Identifiable Information or Wage and Tax Statements commonly

known as W-2 forms for employees. In 2017, the real estate sector was heavily targeted with

many victims reporting losses during real estate transactions.

The BEC/EAC scam is linked to other forms of fraud, including but not limited to: romance,

lottery, employment, and rental scams. The victims of these scams are usually U.S.-based and

may be recruited to illegally transfer money on behalf of others.

In 2017, the IC3 received 15,690 BEC/EAC complaints with adjusted losses of over $675 million.


Ransomware Ransomware is a form of malware targeting both human and technical weaknesses in an effort

to make critical data and/or systems inaccessible. Ransomware is delivered through various

vectors, including Remote Desktop Protocol, which allows computers to connect to each other

across a network, and phishing.

In one scenario, spear phishing emails are sent to end users resulting in the rapid encryption

of sensitive files on a corporate network. When the victim organization determines they are

no longer able to access their data, the cyber actor demands the payment of a ransom,

typically in virtual currency such as Bitcoin. The actor will purportedly provide an avenue to

the victim to regain access to their data once the ransom is paid.

Recent iterations target specific organizations and their employees, making awareness and

training a critical preventative measure.

The FBI does not support paying a ransom to the adversary. Paying a ransom does not

guarantee an organization will regain access to their data; in fact, some individuals or

organizations were never provided with decryption keys after having paid a ransom. Paying a

ransom emboldens the adversary to target other organizations for profit, and provides for a

lucrative environment for other criminals to become involved. While the FBI does not support

paying a ransom, there is an understanding that when businesses are faced with an inability

to function, executives will evaluate all options to protect their shareholders, employees, and

customers.

In all cases the FBI encourages organizations to contact a local FBI field office immediately to

report a ransomware event and request assistance.

In 2017, the IC3 received 1,783 complaints identified as ransomware with adjusted losses of

over $2.3 million.


Tech Support Fraud Tech Support Fraud is a widespread scam in which criminals claim to provide customer, security, or technical support in an effort to defraud unwitting individuals and gain access to the individuals’ devices. There are many variations of this scam, and criminals are constantly changing their tactics to continue the fraud. For example, in addition to telephone calls, pop-up and locked screens, search engine advertising, and URL hijacking/typosquatting, criminals now use phishing emails with malicious links or fraudulent account charges to lure their victims. Criminals also pose as a variety of different security, customer, or technical support representatives and offer to resolve any number of issues, including compromised email, bank accounts, computer viruses, or offer to assist with software license renewal. Some recent complaints involve criminals posing as technical support representatives for income tax assistance, GPS, printer, or cable companies, or support for virtual currency exchanges. In some variations, criminals pose as government agents, who offer to recover losses related to tech support fraud schemes or request financial assistance with “apprehending” criminals.

The “fake refund” variation of tech support fraud is increasing in reports and losses. In this scheme, the criminal contacts the victim offering a refund for tech support services previously rendered. The criminal pretends to refund too much money to the victim’s account and requests the victim return the difference. The “refund and return” process can occur multiple times, resulting in the victim potentially losing thousands of dollars.

During this scheme, if the criminal can connect to the victim’s devices, the criminal will download the victim’s personal files containing financial accounts, passwords, and personal data, like health records, social security numbers, and tax information. The information is used to request bank transfers or open new accounts to accept and process unauthorized payments. Criminals will also send phishing emails to the victim’s personal contacts from the victim’s computer.

Additional information, explanations, and suggestions for protection regarding tech support fraud is available in a recently published Tech Support Fraud Public Service Announcement7 on the IC3 website.

In 2017, the IC3 received 10,949 complaints related to tech support fraud. The claimed losses amounted to nearly $15 million, which represented a 90% increase in losses from 2016. While a majority of tech support fraud involves victims in the U.S., IC3 has received complaints from victims in 85 different countries.

7 Federal Bureau of Investigation. Internet Crime Complaint Center. Tech Support Fraud Public Service Announcement

https://www.ic3.gov/media/default.aspx

https://www.ic3.gov/media/default.aspx


Elder Justice Initiative On February 22, 2018, in response to a coordinated sweep of elder fraud cases, Attorney General Jeff Sessions stated “The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic … When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains … I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”8 The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. We engage in this work by focusing on the following mission areas: Building local, state, and federal capacity to fight elder abuse: Providing targeted training and resources to elder justice professionals including: prosecutors, law enforcement, judges, victim specialists, first responders, civil legal aid employees and multi-disciplinary teams to enhance their ability to respond to elder abuse efficiently and effectively. Promoting justice for older Americans: Investigating and prosecuting financial scams targeting older adults. Promoting greater local, state, and federal coordination to resolve cases where long-term care entities provide grossly substandard care to their residents or patients. Supporting research to improve elder abuse policy and practice: Promoting foundational research into elder abuse and financial exploitation in order to transform the practice of professionals in ways that positively impact the lives of older adults. Helping older victims and their families: Connecting older adults and their families or caregivers with appropriate investigative agencies, as well as empowering them with information about abuse and recovering from its effects. Further information is available at the DOJ Elder Justice Initiative website.9 The US Senate Special Committee on Aging provides additional information in their publication, “Fighting Fraud: Senate Aging Committee Identifies Top 10 Scams Targeting Our Nation’s Seniors”.10 In 2017, the IC3 received 49,523 complaints from victims over the age of 60 with adjusted

losses in excess of $342 million.

8U.S. Department of Justice. Protecting Elderly Americans From Financial Threats 9Elder Justice Initiative. DOJ Elder Justice Initiative Website 10 U.S. Senate Special Committee on Aging. Fighting Fraud: Senate Aging Committee Identifies Top 10 Scams Targeting Our Nation’s Seniors

https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-%20fraud-sweep-more-250-defendants

https://www.justice.gov/elderjustice

https://www.aging.senate.gov/

https://www.aging.senate.gov/


Extortion Extortion occurs when a criminal demands something of value from a victim by threatening

physical or financial harm or the release of sensitive data. Extortion is used in various schemes

reported to the IC3, including Denial of Service attacks, hitman schemes,11 sextortion,12

government impersonation schemes, loan schemes,13 and high-profile data breaches.14

Virtual currency is commonly demanded as the payment mechanism because it provides the

criminal an additional layer of anonymity when perpetrating these schemes.

In 2017, the IC3 received 14,938 extortion-related complaints with adjusted losses of over $15

million.

11 A hitman scheme involves an email extortion in which a perpetrator sends a disturbing email threatening to kill a victim and/or their family. The email instructs the recipient to pay a fee to remain safe and avoid having the hit carried out. 12 Sextortion occurs when a perpetrator threatens to distribute an individual’s private and sensitive material unless the individual provides the perpetrator images of a sexual nature, sexual favors, or money. 13 A loan scheme involves perpetrators contacting victims claiming to be debt collectors from a legitimate company and instructing victims to pay fees in order to avoid legal consequences. 14 A high profile data breach is when sensitive, protected or confidential data belonging to a well-known or established organization is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so.


240,000

260,000

280,000

300,000

320,000

2013 2014 2015 2016 2017

2017 Overall Statistics 15

2017 Victims by Age Group Victims

Age Range16 Total Count Total Loss Under 20 9,053 $8,271,311 20 - 29 41,132 $67,981,630 30 - 39 45,458 $156,287,698 40 - 49 44,878 $244,561,364 50 - 59 43,764 $275,621,946 Over 60 49,523 $342,531,972

15 Accessibility description: image depicts several key statistics regarding complaints and victim loss. A bar chart shows total number of complaints for the years 2013 to 2017. The total number of complaints received since the year 2000 is 4,063,933. IC3 receives approximately 284,000 complaints each year, or more than 800 per day. 16 Not all complaints include an associated age range—those without this information are excluded from this table.

Average Complaints Received Each Year

Approximately 284,000

Average Complaints Received Per Day

Over 800

+++

IMPORTANT STATS

Victim Losses in 2017

$1.42 Billion

IC3 COMPLAINTS

LAST 5 YEARS

# Of Complaints

Reported Since Inception (’00)

4,063,933


Top 20 Foreign Countries by Victim Excluding the United States17

1. Canada 3,164 6. Russian Federation 594 11. France 368 16. Netherlands 266 2. India 2,819 7. Brazil 558 12. China 366 17. Malaysia 265 3. United Kingdom 1,383 8. Germany 466 13. South Africa 349 18. United Arab Emirates 259 4. Australia 989 9. Philippines 453 14. Italy 291 19. Spain 248 5. Mexico 632 10. Japan 413 15. Pakistan 276 20. Argentina 238

17 Accessibility description: image includes a world map with circles corresponding in size to the total number of reports received from specific countries. The top twenty countries are indicated. Specific statistics for each country ranked in descending order of victim figures can be found in the text table immediately below the image.


Top 10 States by Number of Victims 18

Top 10 States by Victim Loss 19

18 Accessibility description: image depicts the United States, with the top ten states (based on reported victims) highlighted. These include California (41,974), Florida (21,887), Texas (21,852), New York (17,622), Pennsylvania (11,348), Virginia (9,436), Illinois (9,381), Ohio (8,157), Colorado (7,909), and New Jersey (7,657). 19 Accessibility description: image depicts the United States, with the top ten states (based on reported victim loss). These include California ($214.2M), Texas (115.7M) Florida ($110.6M), New York ($88.6M), Arizona ($59.4M), Washington ($43M), Illinois ($42.9M), New Jersey ($40.4M), Colorado ($39.9M), and Massachusetts ($39M).


2017 Crime Types

By Victim Count

Crime Type Victims

Crime Type Victims Non-Payment/Non-Delivery 84,079

Misrepresentation 5,437

Personal Data Breach 30,904

Corporate Data Breach 3,785 Phishing/Vishing/Smishing/Pharming 25,344

Investment 3,089

Overpayment 23,135

Malware/Scareware/Virus 3,089 No Lead Value 20,241

Lottery/Sweepstakes 3,012

Identity Theft 17,636

IPR/Copyright and Counterfeit

2,644

Advanced Fee 16,368

Ransomware 1,783 Harassment/Threats of Violence 16,194

Crimes Against Children 1,300

Employment 15,784

Denial of Service/TDoS 1,201 BEC/EAC 15,690

Civil Matter 1,057

Confidence Fraud/Romance 15,372

Re-shipping 1,025 Credit Card Fraud 15,220

Charity 436

Extortion 14,938

Health Care Related 406 Other 14,023

Gambling 203

Tech Support 10,949

Terrorism 177 Real Estate/Rental 9,645

Hacktivist 158

Government Impersonation 9,149

Descriptors* Social Media 19,986

*These descriptors relate to the medium or tool used to facilitate the crime, and are used by the IC3 for tracking purposes only. They are available only after another crime type has been selected.

Virtual Currency 4,139


2017 Crime Types Continued

By Victim Loss

Crime Type Loss

Crime Type Loss BEC/EAC $676,151,185

Misrepresentation $14,580,907

Confidence Fraud/Romance $211,382,989

Harassment/Threats of Violence

$12,569,185

Non-Payment/Non-Delivery $141,110,441

Government Impersonation

$12,467,380

Investment $96,844,144

Civil Matter $5,766,550 Personal Data Breach $77,134,865

IPR/Copyright and Counterfeit

$5,536,912

Identity Theft $66,815,298

Malware/Scareware/ Virus

$5,003,434

Corporate Data Breach $60,942,306

Ransomware $2,344,365 Advanced Fee $57,861,324

Denial of Service/TDoS $1,466,195

Credit Card Fraud $57,207,248

Charity $1,405,460 Real Estate/Rental $56,231,333

Health Care Related $925,849

Overpayment $53,450,830

Re-Shipping $809,746 Employment $38,883,616

Gambling $598,853

Phishing/Vishing/Smishing/ Pharming

$29,703,421

Crimes Against Children

$46,411

Other $23,853,704

Hacktivist $20,147 Lottery/Sweepstakes $16,835,001

Terrorism $18,926

Extortion $15,302,792

No Lead Value $0 Tech Support $14,810,080

Descriptors*

Social Media $56,478,483

*These descriptors relate to the medium or tool used to facilitate the crime, and are used by the IC3 for tracking purposes only. They are available only after another crime type has been selected.

Virtual Currency $58,391,810


2017 Overall State Statistics

Count by Victim per State*

Rank State Victims Rank State Victims 1 California 41,974

30 Connecticut 2,662

2 Florida 21,887

31 Utah 2,260 3 Texas 21,852

32 Hawaii 1,923

4 New York 17,622

33 Mississippi 1,799 5 Pennsylvania 11,348

34 Kansas 1,767

6 Virginia 9,436

35 Arkansas 1,753 7 Illinois 9,381

36 Iowa 1,533

8 Ohio 8,157

37 Alaska 1,418 9 Colorado 7,909

38 New Mexico 1,415

10 New Jersey 7,657

39 Idaho 1,186 11 Washington 7,505

40 District of Columbia 1,143

12 North Carolina 7,316

41 Nebraska 1,140 13 Georgia 7,007

42 New Hampshire 1,106

14 Maryland 6,789

43 West Virginia 1,085 15 Arizona 6,417 44 Delaware 759 16 Michigan 6,400 45 Maine 740 17 Wisconsin 5,245

46 Montana 737

18 Massachusetts 5,221

47 Rhode Island 704 19 Tennessee 4,779

48 Puerto Rico 605

20 Nevada 4,675

49 Vermont 451 21 Missouri 4,187

50 Wyoming 434

22 Indiana 4,067

51 South Dakota 404 23 Alabama 3,865

52 North Dakota 355

24 South Carolina 3,687

53 Guam 66 25 Minnesota 3,619

54 U.S. Minor Outlying Islands 51

26 Oregon 3,455

55 U.S. Virgin Islands 48 27 Louisiana 3,319

56 American Samoa 17

28 Oklahoma 2,809

57 Northern Marina Islands 13 29 Kentucky 2,740

*Note: This information is based on the total number of complaints from each state, American Territory, and the District of Columbia when the complainant provided state information.


2017 Overall State Statistics Continued

Loss by Victim per State*

Rank State Loss Rank State Loss 1 California $214,217,307

30 Alabama $9,949,873

2 Texas $115,680,902

31 Idaho $7,657,726 3 Florida $110,620,330

32 Kentucky $7,220,342

4 New York $88,633,788

33 Mississippi $6,786,910 5 Arizona $59,366,635

34 Kansas $5,045,755

6 Washington $42,991,213

35 Arkansas $4,823,489 7 Illinois $42,894,106

36 New Mexico $4,716,033

8 New Jersey $40,441,739

37 Nebraska $4,286,773 9 Colorado $39,935,041

38 Iowa $4,013,395

10 Massachusetts $38,962,867

39 New Hampshire $3,725,739 11 Georgia $38,353,746

40 Rhode Island $3,390,078

12 Pennsylvania $36,319,408

41 Hawaii $3,368,323 13 Virginia $35,438,537

42 District of Columbia $2,707,684

14 Ohio $30,672,149

43 Montana $2,553,804 15 Maryland $30,045,488

44 South Dakota $2,472,062

16 Michigan $25,362,646

45 West Virginia $2,435,608 17 North Carolina $22,203,108

46 Delaware $2,376,718

18 Nevada $19,578,132

47 Wyoming $2,331,692 19 Missouri $19,475,647

48 North Dakota $2,006,821

20 Minnesota $19,126,165

49 Alaska $1,709,126 21 Wisconsin $15,787,242

50 Puerto Rico $1,590,979

22 Tennessee $13,561,295

51 Maine $1,310,506 23 Indiana $13,228,744

52 Vermont $1,291,941

24 South Carolina $13,048,133

53 Guam $819,163 25 Connecticut $12,465,243

54 U.S. Virgin Islands $625,169

26 Oklahoma $11,671,198

55 U.S. Minor Outlying Islands $61,445 27 Oregon $11,165,342

56 Northern Mariana Islands $21,320

28 Louisiana $10,696,284

57 American Samoa $2,200 29 Utah $10,302,892




Count by Subject per State* Rank State Subjects Rank State Subjects 1 California 14,786

30 District of Columbia 873

2 Texas 8,785

31 Delaware 821 3 Florida 8,709

32 Utah 785

4 New York 7,162

33 Wisconsin 716 5 Virginia 3,795

34 Kentucky 701

6 Illinois 3,627

35 Connecticut 677 7 Georgia 3,228

36 Mississippi 677

8 Maryland 3,161

37 Montana 673 9 New Jersey 2,876

38 Iowa 621

10 Washington 2,514

39 Arkansas 510 11 Ohio 2,384

40 West Virginia 372

12 Pennsylvania 2,361

41 North Dakota 318 13 Nebraska 2,153

42 New Mexico 304

14 Nevada 2,082

43 Idaho 280 15 Arizona 1,874

44 Maine 264

16 Michigan 1,868

45 Alaska 252 17 North Carolina 1,817

46 Hawaii 234

18 Louisiana 1,717

47 Rhode Island 212 19 Tennessee 1,473

48 New Hampshire 186

20 Colorado 1,400

49 Wyoming 154 21 Massachusetts 1,392

50 South Dakota 139

22 Missouri 1,355

51 Puerto Rico 115 23 South Carolina 1,193

52 Vermont 77

24 Oregon 1,192

53 U.S. Minor Outlying Islands 18 25 Indiana 1,148

54 U.S. Virgin Islands 15

26 Oklahoma 1,101

55 Guam 9 27 Minnesota 1,030

56 American Samoa 5

28 Alabama 1,022

57 Northern Mariana Islands 5 29 Kansas 953




Subject Earnings per Destination State*

Rank State Loss Rank State Loss 1 California $83,676,865

30 Kansas $3,185,500

2 Texas $70,647,821

31 District of Columbia $2,931,263 3 Florida $47,274,025

32 Utah $2,634,496

4 New York $39,107,593

33 Arkansas $2,631,804 5 Georgia $22,691,044

34 Iowa $2,367,889

6 Illinois $17,081,877

35 Wisconsin $2,254,829 7 Ohio $16,646,002

36 Mississippi $2,253,167

8 New Jersey $11,424,449

37 New Hampshire $1,989,281 9 Maryland $11,309,325

38 Kentucky $1,957,108

10 Nevada $11,077,774

39 Montana $1,924,196 11 Washington $9,654,732

40 Delaware $1,616,234

12 Pennsylvania $9,516,714

41 New Mexico $1,464,315 13 Virginia $9,457,095

42 Maine $1,298,749

14 Michigan $8,437,965

43 Idaho $1,237,269 15 North Carolina $8,357,577

44 Rhode Island $1,119,321

16 Colorado $8,052,578

45 Hawaii $947,310 17 Arizona $6,792,467

46 North Dakota $865,639

18 Oklahoma $6,636,529

47 West Virginia $770,919 19 Massachusetts $6,588,675

48 South Dakota $756,336

20 Oregon $5,866,936

49 Wyoming $711,958 21 Nebraska $5,150,696

50 Vermont $536,348

22 Connecticut $4,674,297

51 Alaska $446,294 23 Louisiana $4,585,139

52 Puerto Rico $340,309

24 Indiana $4,539,775

53 North Mariana Islands $181,180 25 Minnesota $4,314,856

54 U.S. Minor Outlying

Islands $131,727

26 South Carolina $3,985,279

55 American Samoa $8,370 27 Tennessee $3,764,353

56 U.S. Virgin Islands $5,854

28 Missouri $3,522,518

57 Guam $4,977 29 Alabama $3,429,023



Appendix A: Crime Type Definitions

419/Overpayment: “419” refers to the section in Nigerian law regarding con artistry and fraud

and is associated with requests for help facilitating the transfer of money. The sender of the

“419” letter or email offers the recipient a commission or share in the profits of a transfer of

money, but will first request the recipient send money to pay for some of the costs associated

with the transfer. The recipient may be sent a payment and instructed to keep a portion of the

payment, but send the rest on to another individual or business.

Advanced Fee: In advance fee schemes, the perpetrator informs a victim that the victim has

qualified for a large financial loan or has won a large financial award, but must first pay the

perpetrator taxes or fees in order to access the loan or award. The victim pays the advance

fee, but never receives the promised money.

Auction: A fraudulent transaction or exchange that occurs in the context of an online auction

site.

Business Email Compromise/Email Account Compromise: BEC is a scam targeting businesses

working with foreign suppliers and/or businesses regularly performing wire transfer

payments. EAC is a similar scam that targets individuals. These sophisticated scams are carried

out by fraudsters compromising email accounts through social engineering or computer

intrusion techniques to conduct unauthorized transfer of funds.

Charity: Perpetrators set up false charities, usually following natural disasters, and profit from

individuals who believe they are making donations to legitimate charitable organizations.

Civil Matter: Civil lawsuits are any disputes formally submitted to a court that is not criminal.

Confidence/Romance Fraud: A perpetrator deceives a victim into believing the perpetrator

and the victim have a trust relationship, whether family, friendly or romantic. As a result of

that belief, the victim is persuaded to send money, personal and financial information, or

items of value to the perpetrator or to launder money on behalf of the perpetrator. Some

variations of this scheme are romance/dating scams or the grandparent’s scam.

Corporate Data Breach: A leak or spill of business data that is released from a secure location

to an untrusted environment. It may also refer to a data breach within a corporation or

business where sensitive, protected, or confidential data is copied, transmitted, viewed, stolen

or used by an individual unauthorized to do so.


Credit Card: Credit card fraud is a wide-ranging term for fraud committed using a credit card

or any similar payment mechanism as a fraudulent source of funds in a transaction.

Crimes Against Children: Anything related to the exploitation of children, including child

abuse.

Criminal Forums: A medium where criminals exchange ideas and protocols relating to

intrusion.

Denial of Service: An interruption of an authorized user’s access to any system or network,

typically caused with malicious intent.

Employment: An individual believes they are legitimately employed, and loses money or

launders money/items during the course of their employment.

Extortion: Unlawful extraction of money or property through intimidation or undue exercise

of authority. It may include threats of physical harm, criminal prosecution, or public exposure.

Gambling: Online gambling, also known as Internet gambling and iGambling, is a general term

for gambling using the Internet.

Government Impersonation: A government official is impersonated in an attempt to collect

money.

Hacktivist: A computer hacker whose activity is aimed at promoting a social or political cause.

Harassment/Threats of Violence: Harassment occurs when a perpetrator uses false

accusations or statements of fact to intimidate a victim. Threats of Violence refers to an

expression of an intention to inflict pain, injury, or punishment, which does not refer to the

requirement of payment.

Health Care Related: A scheme attempting to defraud private or government health care

programs, usually involving health care providers, companies, or individuals. Schemes may

include offers for fake insurance cards, health insurance marketplace assistance, stolen health

information, or may involve medications, supplements, weight loss products, or diversion/pill

mill practices. These scams are often initiated through spam email, Internet advertisements,

links in forums or social media, and fraudulent websites.

IPR/Copyright and Counterfeit: The theft and illegal use of others’ ideas, inventions, and

creative expressions, to include everything from trade secrets and proprietary products to

parts to movies, music, and software.


Identity Theft/Account Takeover: Identify theft involves a perpetrator stealing another

person’s personal identifying information, such as name or Social Security number, without

permission to commit fraud. Account Takeover is when a perpetrator obtains account

information to perpetrate fraud on existing accounts.

Investment: Deceptive practice that induces investors to make purchases on the basis of false

information. These scams usually offer the victims large returns with minimal risk. Variations

of this scam include retirement schemes, Ponzi schemes and pyramid schemes.

Lottery/Sweepstakes: An individual is contacted about winning a lottery or sweepstakes they

never entered and are asked to pay a tax or fee in order to receive their winnings.

Malware/Scareware: Software intended to damage or disable computers and computer

systems. Sometimes scare tactics are used by the perpetrators to solicit funds.

Misrepresentation: Merchandise or services were purchased or contracted by individuals

online for which the purchasers provided payment. The goods or services received were of a

measurably lesser quality or quantity than was described by the seller.

No Lead Value: Incomplete complaints which do not allow a crime type to be determined.

Non-Payment/Non-Delivery: In non-payment situations, goods and services are shipped, but

payment is never rendered. In non-delivery situations, payment is sent, but goods and services

are never received.

Other: Other types of fraud not listed.

Personal Data Breach: A leak or spill of personal data that is released from a secure location

to an untrusted environment. It may also refer to a security incident in which an individual's

sensitive, protected, or confidential data is copied, transmitted, viewed, stolen or used by an

unauthorized individual.

Phishing/Vishing/Smishing/Pharming: Unsolicited email, text messages, and telephone calls

purportedly from a legitimate company requesting personal, financial, and/or login

credentials.

Ransomware: A type of malicious software designed to block access to a computer system

until money is paid.

Re-shipping: Individuals receive packages purchased through fraudulent means and

subsequently repackage the merchandise for shipment, usually abroad.

Real Estate/Rental: Fraud involving real estate, rental or timeshare property.


Social Media: A complaint alleging the use of social networking or social media (Facebook,

Twitter, Instagram, chat rooms, etc.) as a vector for fraud. Social Media does not include

dating sites.

Tech Support: Attempts to gain access to a victim’s electronic device by falsely claiming to

offer tech support, usually for a well-known company. Scammer asks for remote access to the

victim's device to clean-up viruses or malware or to facilitate a refund for prior support

services.

Terrorism: Violent acts intended to create fear that is perpetrated for a religious, political, or

ideological goal and deliberately target or disregard the safety of non-combatants.

Virus: Code capable of copying itself and having a detrimental effect, such as corrupting the

system or destroying data.

Virtual Currency: A complaint mentioning a form of virtual cryptocurrency, such as Bitcoin,

Litecoin, or Potcoin.

Internet Crime Complaint Center 1 - American Bank · The IC3 expanded the remote search capabilities of the IC3 database by allowing users to gather IC3 complaint statistics. Users

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